Any financial planner that offers you an annuity - they are not looking out for your better interest. Get a new financial planner. As a FED your pension is fixed income, plus social security (at some point) are basically the fixed income, that actually get COLAs. So the TSP is for everything else.
Good job here. Yes when people hear the word "annuity" they think of different things. Actually with the TSP you have actually already created your own "annuity" and it is very flexible. You can withdraw a monthly amount to create something similar to and immediate annuity or you can just leave it alone without withdrawing anything and make it a deferred annuity. You have the option.
Omg Mr Haws, you need a mega phone, tell them to RUN!!. Those insurance annuities are scams. They're full of restrictions and fees. They only benefit the company.
When I was new in the military, not much more than a year in, we got invited to a "pizza party" at a (supposed) friend's house, turns out it was put up by one of these annuity groups trying to get all of us to sign up... needless to say I had the presence of mind to perceive that something was fishy and I rejected the guy, who acted pissed off, I took an extra slice of pizza and left 😂 That was over 20 years ago, it's crazy to think that if I had given my money to those people, I would still have another 30 years left before I'd see it again, assuming that company never went bankrupt... Thank you for educating federal employees/recipients of federal benefits, there is SO MUCH ignorance and shady dealings, especially within the military branches, I tried my best to educate what was considered unpopular advice to my subordinates when I was in, sharks looking to bank on young uneducated people are everywhere!
That was probably USPA/IRA. So bad, they had to change their name to get more new audiences - Now they are First Command. Unless you e been in for a long time, most don’t know about that little move.
I think to keep this from sounding misleading a true discussion on annuitization vs. LIBRs would be good. Every financial advisor bad mouths annuities because they don't make as much money with them, but truth is they are a great solution for some people. Every person's #1 goal should be to find someone they trust to help them with their money. If you have an uneasy feeling about them or the solutions they are providing, just walk. They can ALL offer you the same solutions, it really comes down to whether or not they have your best interests in mind, or their own pocket book.
Financial planners bad mouth annuities? Where did you ever get that idea? Financial planners love selling annuities because they get large immediate commissions.
@@DannyWalker247 from experience. 99% would prefer to keep your money in the market and manage your AUM so they get reoccurring revenue. Places like EJ don’t even tell their clients they are available. I suppose I shouldn’t have been so inclusive with my statement, because obviously not ALL financial professionals act that way.
Secure Act 2.0 appears to open the gates on annuities with traditional 401Ks. If there are more players in this space, maybe over time the these products will become more transparent with lower fees. However, fed FERS employees already have 2 annuities, pension and SS. A diversified retirement income plan many would argue doesn’t need a third annuity. I would put considerations of Roth conversion strategies, etc over annuity for TSP funds.
I had almost decided to get an annuity from one of those groups that target federal employees. Then I started looking at all the different annuities, and almost all of them were terrible. Finally figured out that the one I was planning to buy was actually pretty terrible, too, compared to other things. Still not sure what I want, but at least I have choices.
If you have a TSP account leave it there do not transfer it to any type of annuity. As a rule income annuities are not good for most people. There could be exceptions but they usually have to do with estate planning in some way. For instance they could be used to fund life insurance or to pay for medical insurance or care.
Every insurance company is required to join a guaranty organization that cover each other's assets. If one insurance company fails, the other members share the burden to reimburse annuity holders.
With a TSP balance of $500,000.00, the 4% rule allows you to withdraw $20,000.00, but you retain the risk and 4% seems risky right now. If you use $400,000.00 of that money to purchase the TSP annuity, you can get $28,000.00 a year for your life and the life of a beneficiary and still keep $100,000.00 to invest for a rainy day. That $28,000.00 annually is larger than the 4%, and much more than most employees are able to leave their spouse, with even full survivor benefits - and FSB would cost 25% of their pension. I'm preparing to retire at age 56 and 8 months and my "break even" age for the annuity would be 70. After that, the annuity payments are all gravy for me and my girlfriend for life. Am I missing something? Because I'm seeing a lot more pros than cons.
I'd say you're right. With the high interest rates now, an annuity can return more than the traditional 4% per annum rule, even if the market tanks. I went ahead and got an annuity too.
The TSP annuity payment is based on several critical factors. For example, if today (June 9, 2024), I purchased a TSP annuity at age 61 that is a joint life annuity (with a spouse of the same age) with increasing payments (2% / year) with 100% payable over my lifetime and/or my spouse's (this means that the payment won't change whether there are two of us, or one of us living), with a cash refund in the event we both die before we receive the $400,000... with an interest rate index of 4.95% that is fixed for the life of the annuity, my monthly payment will be $1,775.36 / month or $21,300 / year. The payment will be $2,580 / month or $30,960 / year if I purchase a single-life annuity with no added features. Wow! Isn't that great? NO. That's because I hand over $400,000 of my hard-earned money, and I get diagnosed with a dreaded disease with 6 months to live... I can't touch my $400,000, I will probably only collect $15,400 of it and the rest will remain with MetLife so that they have money to pay other annuitants who live to 95. If you take away the risk of the annuity, you also take away the reward.
@@TammyF1158 I wouldn't do it either. But I have different reasons. My wife and I have no relatives though, so I really wouldn't care if we didn't get all of our money back.
Annuity with other companies other than the fixed retirement income they also give u the option to pull all your money out for medical emergencies or loan for future use but u pay it back with interest , the downside is u must leave your money in there for at least 10, years so that the insurance co can invest aggressively for it to grow grow! when the market takes a dive it remains above zero -invest mostly in the SP500 Compared to the TSP where growth is stagnant …another upside with annuity if set up correctly If you pass the remaining balance pf your annuity goes to your beneficiaries sort of Like an insurance policy that type of annuity is way better than the TSP
Makes sense. Thank you! Still, with interest rates historically high right now (current TSP annuity rate is 4.2%), a TSP annuity is much more lucrative now than when rates were closer to 1.5% One can use the TSP Withdrawal Modeler to see for themselves.
I had 2 annuities and I found out that once the principal amount was gone, I would still receive payments but if I died, my beneficiaries got nothing. They also had no COLAs so with inflation, so the value decreased every year. When they matured, I cashed them in and invested them in my 401k and my brokerage account. I'm NOT a fan of them either.
I will take the contrarian view here, just for fun :-) There will be some for whom a TSP annuity is a reasonable choice, especially when interest rates are rather high resulting in a higher lifetime annuity. Some just don't have an appetite for wild market fluctuations in retirement. Theoretically, a stock portfolio could lose 50% in a single year, or there could be an entire decade of lousy stock performance; we've seen it before. Some would prefer the certainty of regular (or even increasing) lifetime payments available with a TSP annuity, rather than an uncertain market. Yes, there are drawbacks to the TSP/MetLife annuity such as its inflexibility, but stock markets have their drawbacks too in retirement. In fact, an annuity provides a guarantee, but the stock market certainly does not. Additionally, that contract with MetLife is certainly monitored by the TSP board and Congress itself, so I wouldn't dismiss the TSP/Metlife annuity "just another insurance company trying to rip you off with hidden fees", as some commenters claim. The cost and benefits of the TSP/Metlife annuity are rather clearly displayed upfront, on the TSP withdrawal modeler website.
For a federal employee with a pension and SSI, you never need, nor want, a TSP annuity. Ever. The theoretical loss is only a loss if you take out everything from your TSP--and you only had your TSP, in retirement, in the C, S, or I fund. If anyone has any form of competent advice, that will never be the case. The only guarantee of an annuity is you lose money --long or short run.
@@Psuedo-Nim Never? With all due respect …. to each their own. Everyone has different needs, and no guideline is absolute. I for one am very happy to receive a large dependable TSP annuity check every month for the rest of my life, regardless of market conditions. With high interest rates like this, it’s a great time to start a TSP annuity. And I’m receiving far more than a 4% per year withdraw guideline. I'd prefer not to rely on Social Security, which is years away (as late as 70 years old) and probably not dependable. Also, Since the FERS annuity isn't even half as good as the old CSRS, this is a great way to compensate for that.
This is one of the very few comments (KurtS) I’ve seen on the topic of the TSP Life Annuity that’s actually true. Most of the financial advisors-especially this guy, posting these videos as well as most of the comments posted, lack a basic understanding of this type of annuity and they contribute to a biased group mentality. It’s harder to do the research and look at it objectively than it is to watch a couple videos, read the comments and decide based on just that. Anyway, good to read at least one reasonable and fair comment on this topic.
@@stewartkaplan3100 I have known Dallen for several years and have spoken to him about complex retirement benefit issues. I am a 35-year federal retirement benefits specialist who counsels and trains many federal agencies and employees. I have found that Dallen is a very astute financial advisor and fiduciary. He understands that career federal employees often retire with enough monthly income adjusted for inflation to pay their monthly living expenses without barely touching their TSP savings. The TSP is for the "good life" in retirement or for those expenses that are over and above day-to-day living costs for many federal employees (for those with shorter careers that might only be 5 - 25 years; this may not hold true). Even if the TSP is needed to provide monthly income to supplement the FERS pension benefit (for a 30-year career at age 62, this will replace 33% of pre-retirement income) and Social Security (that may also replace 30 - 40% of pre-retirement income for the average fed), investing in a way that only spends what is invested safely and puts the rest in the market can be a safe plan that allows flexibility for future spending and inheritance purposes. If I were to guess, you are an annuity salesman rather than a fiduciary. There is also a Stewart Kaplan who does training for the TSP, and if this is you, then I'm wondering what your goal is in making your comments on Dallen's engaging and informative video. NO ONE should make investment or retirement decisions based on a video, but these videos provide food for thought and something to consider as federal workers face so many choices and unscrupulous annuity salespeople trying to cash in on the feds.
Not quite like an annuity, but if I have a major expense (like I need a new $20K roof), should I take that all out of my TSP, or pay the cost in installments/loans?
Over the years companies/businesses come and go. Although unlikely, potential down side of purchasing an annuity is that the purchaser may out live the insurance company with whom the annuity is purchased. The term of the annuity is only as good as the health of the insurance company.
Every insurance company is required to join a guaranty organization that covers each other's liabilities in the event of a failure. If one company folds, the remaining members share the burden of reimbursing annuity holders.
How would my TSP be taxed if I turned it into an annuity? Would I pay taxes on the full amount and then use the remaining to purchase the annuity, or could I use the full amount to buy an annuity and then pay tax on the monthly payments?
I think that you have not mentioned the key points. What is age when the money in TSP will be equal to that from annuity? that is very important since people can make decision with the health status.
So by your logic, one should stay single, rent everything and never plan for the future. Seriously, there are so many annuities available other than SPIA (single premium immediate annuities).
When you sign up for annuity to a financial group or insurance company, can you designate a beneficiary so that when you pass your beneficiary will get your money or will continue to receive the monthly benefit?
I do agree, going 100% either way is ill-advised, but having a portion of your portfolio being in fixed income is not a terrible decision if it affords you sequence of return risk protection; you also have the option of in bullish markets you can withdraw more from your variable investments and re-invest your fixed income (there's no rule saying you have to spend your fixed income amounts). Would be interesting to know if there's any benefit to having a 200k-300k income annuity vice just chucking that 200-300k in the G fund and drawing down your projected annuity monthly income that way.
Reinvestment of annuity income is sometimes not taken into account in these discussions. I plan to reinvest my annual annuity and Treasury income until, at some point, I may need to start consuming it, but I just look at that stream as an investment principal generator that also has an insurance aspect to it. I bought a large cache of Treasury bonds over the last couple of months as well, those are going to return 4.5-5% per year and are partially tax exempt. Good times. 😄
I retire in 4 years and have always done traditional TSP. Want more cash on hand when I go, should I switch all new money to Roth or is it too late or not worth it? Love all your videos....
I would switch to all Roth, as long as it does not push you into a new tax bracket. Think of it as a way to stuff extra money into the TSP beyond the max limit. And with the new secure act, you no longer have to move the Roth money out of the TSP to avoid extra RMDs.
@@Fam-qk4si it doesn’t sound like you are at your max limit for contributions. Remember that when you contribute Roth, you will get less in your paycheck. It may be time to talk to a financial planner.
Any financial planner that offers you an annuity - they are not looking out for your better interest. Get a new financial planner. As a FED your pension is fixed income, plus social security (at some point) are basically the fixed income, that actually get COLAs. So the TSP is for everything else.
I love your video's Dallen! I'm so glad that there are financial advisors like you who are passionate about helping federal employees. Great job!
Good job here. Yes when people hear the word "annuity" they think of different things. Actually with the TSP you have actually already created your own "annuity" and it is very flexible. You can withdraw a monthly amount to create something similar to and immediate annuity or you can just leave it alone without withdrawing anything and make it a deferred annuity. You have the option.
Thank you for another great video with valuable information for upcoming and future retiring government employees.
Thanks for helping out Fed govt employees with very important financial decisions. This information is very useful!
Omg Mr Haws, you need a mega phone, tell them to RUN!!. Those insurance annuities are scams. They're full of restrictions and fees. They only benefit the company.
When I was new in the military, not much more than a year in, we got invited to a "pizza party" at a (supposed) friend's house, turns out it was put up by one of these annuity groups trying to get all of us to sign up... needless to say I had the presence of mind to perceive that something was fishy and I rejected the guy, who acted pissed off, I took an extra slice of pizza and left 😂
That was over 20 years ago, it's crazy to think that if I had given my money to those people, I would still have another 30 years left before I'd see it again, assuming that company never went bankrupt...
Thank you for educating federal employees/recipients of federal benefits, there is SO MUCH ignorance and shady dealings, especially within the military branches, I tried my best to educate what was considered unpopular advice to my subordinates when I was in, sharks looking to bank on young uneducated people are everywhere!
That was probably USPA/IRA. So bad, they had to change their name to get more new audiences - Now they are First Command. Unless you e been in for a long time, most don’t know about that little move.
I think to keep this from sounding misleading a true discussion on annuitization vs. LIBRs would be good. Every financial advisor bad mouths annuities because they don't make as much money with them, but truth is they are a great solution for some people. Every person's #1 goal should be to find someone they trust to help them with their money. If you have an uneasy feeling about them or the solutions they are providing, just walk. They can ALL offer you the same solutions, it really comes down to whether or not they have your best interests in mind, or their own pocket book.
Financial planners bad mouth annuities? Where did you ever get that idea? Financial planners love selling annuities because they get large immediate commissions.
@@DannyWalker247 from experience. 99% would prefer to keep your money in the market and manage your AUM so they get reoccurring revenue. Places like EJ don’t even tell their clients they are available. I suppose I shouldn’t have been so inclusive with my statement, because obviously not ALL financial professionals act that way.
Right. My friend rolled his TSP over with EJ. They have him in all sorts of things. Like you said, AUM.@@bdfentress
Mr Haws great information . Because of the flexibility of withdrawal I am staying with TSP. Thank you 👍👍👍👍👍
Secure Act 2.0 appears to open the gates on annuities with traditional 401Ks. If there are more players in this space, maybe over time the these products will become more transparent with lower fees. However, fed FERS employees already have 2 annuities, pension and SS. A diversified retirement income plan many would argue doesn’t need a third annuity. I would put considerations of Roth conversion strategies, etc over annuity for TSP funds.
Thanks for sharing. You’re a wealth of knowledge!
I had almost decided to get an annuity from one of those groups that target federal employees. Then I started looking at all the different annuities, and almost all of them were terrible. Finally figured out that the one I was planning to buy was actually pretty terrible, too, compared to other things. Still not sure what I want, but at least I have choices.
If you have a TSP account leave it there do not transfer it to any type of annuity. As a rule income annuities are not good for most people. There could be exceptions but they usually have to do with estate planning in some way. For instance they could be used to fund life insurance or to pay for medical insurance or care.
Retiring soon. I appreciate the info. Thanks!
Thanks. Like always great information. Did not know that I can tell Tsp to send me a monthly amount
Another downside: what if the underwriter (insurance company) goes out of business.
Every insurance company is required to join a guaranty organization that cover each other's assets. If one insurance company fails, the other members share the burden to reimburse annuity holders.
With a TSP balance of $500,000.00, the 4% rule allows you to withdraw $20,000.00, but you retain the risk and 4% seems risky right now. If you use $400,000.00 of that money to purchase the TSP annuity, you can get $28,000.00 a year for your life and the life of a beneficiary and still keep $100,000.00 to invest for a rainy day. That $28,000.00 annually is larger than the 4%, and much more than most employees are able to leave their spouse, with even full survivor benefits - and FSB would cost 25% of their pension. I'm preparing to retire at age 56 and 8 months and my "break even" age for the annuity would be 70. After that, the annuity payments are all gravy for me and my girlfriend for life. Am I missing something? Because I'm seeing a lot more pros than cons.
I'd say you're right. With the high interest rates now, an annuity can return more than the traditional 4% per annum rule, even if the market tanks. I went ahead and got an annuity too.
Hey Kurt. My retirement is still ten months away, but I'd love to know if you are happy with the annuity option. @@KurtS-kx9iz
The TSP annuity payment is based on several critical factors. For example, if today (June 9, 2024), I purchased a TSP annuity at age 61 that is a joint life annuity (with a spouse of the same age) with increasing payments (2% / year) with 100% payable over my lifetime and/or my spouse's (this means that the payment won't change whether there are two of us, or one of us living), with a cash refund in the event we both die before we receive the $400,000... with an interest rate index of 4.95% that is fixed for the life of the annuity, my monthly payment will be $1,775.36 / month or $21,300 / year. The payment will be $2,580 / month or $30,960 / year if I purchase a single-life annuity with no added features. Wow! Isn't that great? NO. That's because I hand over $400,000 of my hard-earned money, and I get diagnosed with a dreaded disease with 6 months to live... I can't touch my $400,000, I will probably only collect $15,400 of it and the rest will remain with MetLife so that they have money to pay other annuitants who live to 95. If you take away the risk of the annuity, you also take away the reward.
@@TammyF1158 I wouldn't do it either. But I have different reasons. My wife and I have no relatives though, so I really wouldn't care if we didn't get all of our money back.
Annuity with other companies other than the fixed retirement income they also give u the option to pull all your money out for medical emergencies or loan for future use but u pay it back with interest , the downside is u must leave your money in there for at least 10, years so that the insurance co can invest aggressively for it to grow grow! when the market takes a dive it remains above zero -invest mostly in the SP500 Compared to the TSP where growth is stagnant …another upside with annuity if set up correctly If you pass the remaining balance pf your annuity goes to your beneficiaries sort of Like an insurance policy that type of annuity is way better than the TSP
Makes sense. Thank you! Still, with interest rates historically high right now (current TSP annuity rate is 4.2%), a TSP annuity is much more lucrative now than when rates were closer to 1.5% One can use the TSP Withdrawal Modeler to see for themselves.
There are money market accounts paying 4.25%
No and no
You might be surprised though to see how much a TSP annuity will pay you, given today's higher interest rates.
I had 2 annuities and I found out that once the principal amount was gone, I would still receive payments but if I died, my beneficiaries got nothing. They also had no COLAs so with inflation, so the value decreased every year. When they matured, I cashed them in and invested them in my 401k and my brokerage account. I'm NOT a fan of them either.
I will take the contrarian view here, just for fun :-) There will be some for whom a TSP annuity is a reasonable choice, especially when interest rates are rather high resulting in a higher lifetime annuity. Some just don't have an appetite for wild market fluctuations in retirement. Theoretically, a stock portfolio could lose 50% in a single year, or there could be an entire decade of lousy stock performance; we've seen it before. Some would prefer the certainty of regular (or even increasing) lifetime payments available with a TSP annuity, rather than an uncertain market. Yes, there are drawbacks to the TSP/MetLife annuity such as its inflexibility, but stock markets have their drawbacks too in retirement. In fact, an annuity provides a guarantee, but the stock market certainly does not. Additionally, that contract with MetLife is certainly monitored by the TSP board and Congress itself, so I wouldn't dismiss the TSP/Metlife annuity "just another insurance company trying to rip you off with hidden fees", as some commenters claim. The cost and benefits of the TSP/Metlife annuity are rather clearly displayed upfront, on the TSP withdrawal modeler website.
For a federal employee with a pension and SSI, you never need, nor want, a TSP annuity. Ever. The theoretical loss is only a loss if you take out everything from your TSP--and you only had your TSP, in retirement, in the C, S, or I fund. If anyone has any form of competent advice, that will never be the case. The only guarantee of an annuity is you lose money --long or short run.
@@Psuedo-Nim Never? With all due respect …. to each their own. Everyone has different needs, and no guideline is absolute. I for one am very happy to receive a large dependable TSP annuity check every month for the rest of my life, regardless of market conditions. With high interest rates like this, it’s a great time to start a TSP annuity. And I’m receiving far more than a 4% per year withdraw guideline. I'd prefer not to rely on Social Security, which is years away (as late as 70 years old) and probably not dependable. Also, Since the FERS annuity isn't even half as good as the old CSRS, this is a great way to compensate for that.
This is one of the very few comments (KurtS) I’ve seen on the topic of the TSP Life Annuity that’s actually true. Most of the financial advisors-especially this guy, posting these videos as well as most of the comments posted, lack a basic understanding of this type of annuity and they contribute to a biased group mentality. It’s harder to do the research and look at it objectively than it is to watch a couple videos, read the comments and decide based on just that. Anyway, good to read at least one reasonable and fair comment on this topic.
@@stewartkaplan3100 thank you.
@@stewartkaplan3100 I have known Dallen for several years and have spoken to him about complex retirement benefit issues. I am a 35-year federal retirement benefits specialist who counsels and trains many federal agencies and employees. I have found that Dallen is a very astute financial advisor and fiduciary. He understands that career federal employees often retire with enough monthly income adjusted for inflation to pay their monthly living expenses without barely touching their TSP savings. The TSP is for the "good life" in retirement or for those expenses that are over and above day-to-day living costs for many federal employees (for those with shorter careers that might only be 5 - 25 years; this may not hold true). Even if the TSP is needed to provide monthly income to supplement the FERS pension benefit (for a 30-year career at age 62, this will replace 33% of pre-retirement income) and Social Security (that may also replace 30 - 40% of pre-retirement income for the average fed), investing in a way that only spends what is invested safely and puts the rest in the market can be a safe plan that allows flexibility for future spending and inheritance purposes. If I were to guess, you are an annuity salesman rather than a fiduciary. There is also a Stewart Kaplan who does training for the TSP, and if this is you, then I'm wondering what your goal is in making your comments on Dallen's engaging and informative video. NO ONE should make investment or retirement decisions based on a video, but these videos provide food for thought and something to consider as federal workers face so many choices and unscrupulous annuity salespeople trying to cash in on the feds.
I heard that the TSP 70 form is obsolete and is being replaced by TSP 99. Have you heard anything about this change?
Not quite like an annuity, but if I have a major expense (like I need a new $20K roof), should I take that all out of my TSP, or pay the cost in installments/loans?
Over the years companies/businesses come and go. Although unlikely, potential down side of purchasing an annuity is that the purchaser may out live the insurance company with whom the annuity is purchased. The term of the annuity is only as good as the health of the insurance company.
Every insurance company is required to join a guaranty organization that covers each other's liabilities in the event of a failure. If one company folds, the remaining members share the burden of reimbursing annuity holders.
How would my TSP be taxed if I turned it into an annuity? Would I pay taxes on the full amount and then use the remaining to purchase the annuity, or could I use the full amount to buy an annuity and then pay tax on the monthly payments?
you can use the full amount to purchase the annuity, and then pay tax monthly on the payments only
I think that you have not mentioned the key points. What is age when the money in TSP will be equal to that from annuity? that is very important since people can make decision with the health status.
There must be some annuity success stores, no?
So by your logic, one should stay single, rent everything and never plan for the future. Seriously, there are so many annuities available other than SPIA (single premium immediate annuities).
When you sign up for annuity to a financial group or insurance company, can you designate a beneficiary so that when you pass your beneficiary will get your money or will continue to receive the monthly benefit?
its possible with some annuities, but you definitely have to read the fine print
"there are some things that look good on paper, but they're actually not..."
I do agree, going 100% either way is ill-advised, but having a portion of your portfolio being in fixed income is not a terrible decision if it affords you sequence of return risk protection; you also have the option of in bullish markets you can withdraw more from your variable investments and re-invest your fixed income (there's no rule saying you have to spend your fixed income amounts).
Would be interesting to know if there's any benefit to having a 200k-300k income annuity vice just chucking that 200-300k in the G fund and drawing down your projected annuity monthly income that way.
Reinvestment of annuity income is sometimes not taken into account in these discussions. I plan to reinvest my annual annuity and Treasury income until, at some point, I may need to start consuming it, but I just look at that stream as an investment principal generator that also has an insurance aspect to it. I bought a large cache of Treasury bonds over the last couple of months as well, those are going to return 4.5-5% per year and are partially tax exempt. Good times. 😄
You already get an annuity when you retire from the feds + social security. There is no need to have a third.
Yea, but many will delay starting Social Security to late 60s or even 70. So a TSP annuity can work in the mean time.
No.
I retire in 4 years and have always done traditional TSP. Want more cash on hand when I go, should I switch all new money to Roth or is it too late or not worth it? Love all your videos....
You can't access roth tsp until 59½. Just something to keep in mind.
@@aaront936 Right, but that does not answer my question.
I would switch to all Roth, as long as it does not push you into a new tax bracket. Think of it as a way to stuff extra money into the TSP beyond the max limit. And with the new secure act, you no longer have to move the Roth money out of the TSP to avoid extra RMDs.
@@wildzeke I only contribute 10% of my $80k salary so I should be good.
@@Fam-qk4si it doesn’t sound like you are at your max limit for contributions. Remember that when you contribute Roth, you will get less in your paycheck. It may be time to talk to a financial planner.
No!!!
why?